BILL NUMBER: SB 165	CHAPTERED  09/19/00

	CHAPTER   535
	FILED WITH SECRETARY OF STATE   SEPTEMBER 19, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 18, 2000
	PASSED THE SENATE   AUGUST 30, 2000
	PASSED THE ASSEMBLY   AUGUST 24, 2000
	AMENDED IN ASSEMBLY   AUGUST 14, 2000
	AMENDED IN ASSEMBLY   AUGUST 7, 2000
	AMENDED IN ASSEMBLY   JUNE 20, 2000
	AMENDED IN SENATE   JANUARY 4, 2000
	AMENDED IN SENATE   APRIL 27, 1999
	AMENDED IN SENATE   APRIL 13, 1999

INTRODUCED BY   Senator Alarcon and Assembly Member Villaraigosa
   (Coauthor:  Senator Murray)
   (Coauthors:  Assembly Members Kuehl, McClintock, Scott, and
Wildman)

                        JANUARY 11, 1999

   An act to add Sections 50075.1, 50075.3, and 50075.5 to, and to
add Article 1.5 (commencing with Section 53410) to Chapter 3 of Part
1 of Division 2 of Title 5 of, the Government Code, relating to local
agency finance.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 165, Alarcon.  Local government finance:  special taxes.
   Existing law specifies a procedure for the legislative body of a
city, county, or district to propose to the voters an ordinance or
resolution to adopt a special tax pursuant to constitutional
requirements.
   This bill would enact the Local Agency Special Tax and Bond
Accountability Act, which would require that any local special tax
measure subject to voter approval contain a statement indicating the
specific purposes of the special tax, require that the proceeds of
the special tax be applied to those purposes, require the creation of
an account into which the proceeds shall be deposited, and require
an annual report containing specified information concerning the use
of the proceeds.  The bill would impose similar accountability
requirements with respect to any local bond measure that is subject
to voter approval that would provide for the sale of bonds by a local
agency.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  (a) This act shall be known and may be cited as the
Local Agency Special Tax and Bond Accountability Act.
   (b) The Legislature finds and declares that the California
Constitution requires the voters of local agencies to approve the
levy of special taxes and many forms of bonded indebtedness.  These
special taxes and bonds can be important sources of funding for local
agencies' public facilities and public services.  Earning the voters'
confidence to support special taxes and bonds requires local
agencies to demonstrate to the voters that they spend these funds on
the intended facilities and services.
   (c) The Legislature further finds and declares that the procedures
for local agencies to obtain voter approval of special taxes and
bonded indebtedness affect the general welfare of all Californians.
Accordingly, the Legislature finds and declares that the procedures
created by this act constitute an issue of statewide concern and not
merely a municipal affair.  Therefore, the Legislature intends that
the procedures created by this act shall apply to all local agencies,
including charter cities.
  SEC. 2.  Section 50075.1 is added to the Government Code, to read:

   50075.1.  On or after January 1, 2001, any local special tax
measure that is subject to voter approval that would provide for the
imposition of a special tax by a local agency shall provide
accountability measures that include, but are not limited to, all of
the following:
   (a) A statement indicating the specific purposes of the  special
tax.
   (b) A requirement that the proceeds be applied only to the
specific purposes identified pursuant to subdivision (a).
   (c) The creation of an account into which the proceeds shall be
deposited.
   (d) An annual report pursuant to Section 50075.3.
  SEC. 3.  Section 50075.3 is added to the Government Code, to read:

   50075.3.  The chief fiscal officer of the levying local agency
shall file a report with its governing body  no later than January 1,
2002, and at least once a year thereafter.  The annual report shall
contain both of the following:
   (a) The amount of funds collected and expended.
   (b) The status of any project required or authorized to be funded
as identified in subdivision (a) of Section 50075.1.
  SEC. 4.  Section 50075.5 is added to the Government Code, to read:

   50075.5.  As used in this article:
   (a) "Local agency" means any county, city, city and county,
including a charter city or county, or any special district.
   (b) "Special district" means an agency of the state, formed
pursuant to general law or a special act, for the performance of
governmental or proprietary functions, with limited geographic
boundaries, including, but not limited to, a school district and a
community college district.
  SEC. 5.  Article 1.5 (commencing with Section 53410) is added to
Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code,
to read:

      Article 1.5.  Bond Accountability

   53410.  On or after January 1, 2001, any local bond measure that
is subject to voter approval that would provide for the sale of bonds
by a local agency shall provide accountability measures that
include, but are not limited to, all of the following:
   (a) A statement indicating the specific single purpose of the
bond.
   (b) A requirement that the proceeds be applied only to the
specific purpose identified pursuant to subdivision (a).
   (c) The creation of an account into which the proceeds shall be
deposited.
   (d) An annual report pursuant to Section 53411.
   53411.  The chief fiscal officer of the issuing local agency shall
file a report with its governing body no later than January 1, 2002,
and at least once a year thereafter.  The annual report shall
contain all of the following:
   (a) The amount of funds collected and expended.
   (b) The status of any project required or authorized to be funded
as identified in subdivision (a) of Section 53410.
   53412.  As used in this article:
   (a) "Local agency" means any county, city, city and county,
including a charter city or county, or any special district.
   (b) "Special district" means an agency of the state, formed
pursuant to general law or a special act, for the performance of
governmental or proprietary functions, with limited geographic
boundaries, including, but not limited to, a school district and a
community college district.
   (c) "Bond" means any bonded indebtedness regardless of state law
or charter that requires voter approval, including, but not limited
to, general obligation bonds, revenue bonds, and bonds issued
pursuant to the Mello-Roos Community Facilities Act (Chapter 2.5
(commencing with Section 53311)).
